What Is a Share of Stock?

What is a stock for kids? Nova has a tasty answer: imagine a giant pizza that stands for a whole company. Each slice is a share. If you own a slice, you own a small piece of the company. This lesson builds from that idea to stock exchanges, dividends and diversification.

What is a stock for kids? Start with ownership

A stock, also called a share, is a unit of ownership in a company. Companies sell shares to raise money to grow. People who buy them become shareholders. If the company does well, its shares may become more valuable; however, if it struggles, they may lose value.

Three age levels

• Ages 4+: a pizza story about owning a slice of a lemonade company.
• Ages 8+: shares, shareholders, exchanges and dividends.
• Ages 13+: market capitalization, price changes, investing vs. speculation and diversification.

What is a stock for kids to practice with?

Wealthonauts teaches investing with fictional companies and virtual money only. Real brokerage accounts are for adults, though parents can open custodial accounts for children in many cases. Securities and Exchange Commission.

When you finish, build a pretend portfolio in the Stock Market Simulator and see diversification in action.

How to use this lesson at home or in class

Start with the level that matches your learner, then try the next level up when they are ready. For example, a family can read the Junior story together, while an older sibling works through the Advanced version. Because every level covers the same topic, this what is a stock for kids lesson works well for mixed-age groups, homeschool co-ops and classrooms. Finally, the quiz shows what stuck, and the summary makes a quick review the next day.